Student Accommodation Study

114 Pages·2006·4.45 MB·English

MacroPlan Australia

MacroPlan Australia
Setting New Standards
Setting New Standards

Student Accommodation Study

October 2006

PREPARED FOR CITY OF WHITEHORSE

MACROPLAN AUSCTitRy AoLf IWA hPiTteYh LoTrsDe Page 1 of 60
SYDNEY |MELBOURNE
MacroPlan Australia

Setting New Standards
+
Contact Information
PROJECT DIRECTOR SYDNEY
Con Tsotsoros (Director, Spatial Planning) Fairfax House
MELBOURNE Level 5, 19-31 Pitt Street,
Sydney, NSW. 2000
t. 02 9252 1199 f. 02 9241 6002

REPORT CONTACT
Jason Black (Associate Director, Spatial MELBOURNE
Planning) MELBOURNE Level 4, 107-109 Flinders Lane,
Melbourne, Vic. 3000
t. 03 9663 6826 f. 03 9663 2896

e. [email protected]
w. www.macroplan.com.au

Signed+

…………………………………….…….
Dated: 26 October 2006
+ This document has been reviewed by the Director of the Spatial Planning Group, MacroPlan Australia.
This document is for discussion purposes only unless signed and dated by the person(s) identified.
Disclaimer
© MacroPlan Australia Pty Ltd
All Rights Reserved. No part of this document may be reproduced, transmitted, stored in a retrieval system, or
translated into any language in any form by any means without the written permission of MacroPlan Australia Pty Ltd.
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the confidential intellectual property of MacroPlan Australia Pty Ltd and may not be used or disclosed to any party
without the written permission of MacroPlan Australia Pty Ltd.
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Setting New Standards
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Contents
1 Executive Summary--------------------------------------------------------------------------------------5
2 What is Student Accommodation?-------------------------------------------------------------------9
2.1 Purpose Built Accommodation-----------------------------------------------------------------9
2.2 Modified Accommodation---------------------------------------------------------------------10
3 Why a Student Accommodation Study?------------------------------------------------------------11
3.1 Review of Student Accommodation Policies----------------------------------------------11
3.2 What will the Study Achieve?-----------------------------------------------------------------12
3.3 How to Read this Study------------------------------------------------------------------------12
4 Methodology---------------------------------------------------------------------------------------------13
5 Regional Context----------------------------------------------------------------------------------------15
5.1 Whitehorse Demographic Profile------------------------------------------------------------15
5.2 Box Hill Institute of TAFE-----------------------------------------------------------------------17
5.3 Deakin University--------------------------------------------------------------------------------18
5.4 Secondary Colleges----------------------------------------------------------------------------18
5.5 Other Institutions---------------------------------------------------------------------------------20
6 Planning Considerations-------------------------------------------------------------------------------21
6.1 Federal/State policy-----------------------------------------------------------------------------21
6.2 Melbourne 2030---------------------------------------------------------------------------------21
6.3 Whitehorse Planning Scheme----------------------------------------------------------------21
6.3.1 Municipal Strategic Statement & Local Planning Policies --------------------------21
6.3.2 Zoning-----------------------------------------------------------------------------------------22
7 Student Accommodation Market --------------------------------------------------------------------24
7.1 Factors Affecting the Market------------------------------------------------------------------24
7.1.1 Export Industry Considerations-----------------------------------------------------------25
7.1.2 Ethnicity and Culture of Students--------------------------------------------------------26
7.1.3 Location---------------------------------------------------------------------------------------26
7.1.4 Affordability------------------------------------------------------------------------------------27
7.2 City of Whitehorse Student Accommodation Market------------------------------------29
7.2.1 Demographic Profiles of Box Hill Institute of TAFE & Deakin University
Students---------------------------------------------------------------------------------------29
7.2.2 Future Direction of Educational Institutions--------------------------------------------33
7.2.3 Conclusions----------------------------------------------------------------------------------34
8 Student Accommodation Supply Assessment----------------------------------------------------35
8.1.1 Survey of Existing Student Accommodation in the Municipality-------------------36
8.1.2 Approved or Pending Applications for Student Accommodation-----------------37
8.1.3 Existing and Proposed Student Accommodation-------------------------------------38
9 Student Accommodation Demand Assessment--------------------------------------------------39
9.1 Future of the International Student Market-------------------------------------------------39
9.1.1 Conclusions----------------------------------------------------------------------------------44
9.2 Future Market Demand in the City of Whitehorse----------------------------------------45
9.2.1 Assumptions----------------------------------------------------------------------------------45
9.2.2 Demand Calculations-----------------------------------------------------------------------46
9.2.3 Projections------------------------------------------------------------------------------------47
9.3 Supply Gap Analysis----------------------------------------------------------------------------52
9.3.1 Purpose Built Student Accommodation Facilities------------------------------------52
9.3.2 Affordable Housing--------------------------------------------------------------------------53
9.3.3 Mixed Use Development-------------------------------------------------------------------53
9.3.4 Conclusions----------------------------------------------------------------------------------53
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9.4 Product Mix – Type and Location------------------------------------------------------------54
10 Summary of Issues------------------------------------------------------------------------------------57
10.1 People----------------------------------------------------------------------------------------------57
10.2 Places----------------------------------------------------------------------------------------------59
10.3 Product--------------------------------------------------------------------------------------------60

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1 Executive Summary
1. The Student Accommodation Study has
been undertaken to inform the City of
Whitehorse on the current student
population residing in the municipality, the
supply of purpose built student
accommodation and the forecasted
demand for more facilities. The study also
seeks to inform the CoW in relation to the
appropriate design of student housing and
how the student market can benefit the
municipality.
2. Box Hill Institute of TAFE and Deakin
University are the two tertiary institutions
driving demand for student
accommodation. There are approximately
48,000 students, including an estimated
3800 international students. A further 2900
international students attend Deakin
University’s Toorak campus, which is
currently being relocated to Burwood.
3. Student accommodation is different to
traditional forms of housing. The market is
affected by international exchange rates
(ability to pay), government policy and other
factors generally associated with
international export markets. Moreover, the
demand for student housing is cyclical
peaking twice a year (Feb. & July). Due to
long holiday periods student
accommodation is subject to higher than
average residential vacancy levels.
However, vacancies are factored into the
price of the accommodation.
4. Demand for purpose built student housing
is primarily driven by the international
student market who use an estimated 95%
of the purpose built student
accommodation beds. The market has
progressively increased over the past 10
years. Any change to the number of
international students is likely to have an
impact on the demand for housing.
5. There are three main locational factors that
drive student housing demand. They are:
(cid:131) Comfortable walking distance from the
institution(approximately 500 metres)
(cid:131) Excellent access to public transport
(cid:131) Within a vibrant and active environment
(e.g. Box Hill Activity Centre /
Neighbourhood Centres)
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6. Affordability is extremely important to students. Although there is a range of housing
on offer in the municipality, generally there is a limit to the amount of money students
have to spend on accommodation. Affordability can be achieved through a range of
design concessions, such as minimising open space and common areas and
reducing the need for carparking. This is particularly the case in developments
occupied by a large majority of international students.
7. Accommodation that does not have the right locational aspects will have significantly
reduced demand. To compensate, weekly rents would have to be reduced
accordingly and may not provide the expected returns to those investing in student
accommodation developments.
8. The average cost for a studio / bedroom in a purpose built facility is approximately
$180-200 per week. This is based on having the right locational attributes.
9. There are limited places available in the existing accommodation facilities which are
subject to high cyclical occupancy rates, with demand generally outstripping supply.
10. Three types of student accommodation ‘supply gaps’ have been identified in the City
of Whitehorse. These gaps represent the need for an increase in:
(cid:131) ‘Purpose built’ student accommodation facilities
(cid:131) Less expensive housing options within purpose built facilities
(cid:131) Mixed use development, incorporating student accommodation and café
culture
In the context of locational characteristics, appropriate facilities could be built in
neighbourhood shopping centres, along effective transport corridors and within close
proximity to the educational institutions.
11. Like any market there are potential influences that could substantially alter the future
student accommodation market demand. These include:
(cid:131) Major ‘on-campus’ development
(cid:131) Change in international student market profile
(cid:131) Global education trends
(cid:131) Change in Australia’s migration policies
12. Our research indicates that the student accommodation market is growing in the City
of Whitehorse due to:
(cid:131) General growth in the overseas student market
(cid:131) Specific growth in the international student numbers in the institutions in
Whitehorse
13. Students attending Deakin University or Box Hill Institute of TAFE who are already
living in Whitehorse are less likely to move into student accommodation. Those
coming to the area specifically to study are the primary market for student
accommodation providers.

14. The student housing market provides an important opportunity for the local economy.
Direct economic benefits include:
(cid:131) Increased retail / entertainment/ expenditure
(cid:131) Employment opportunities in construction and service / support based industry
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Indirect economic benefits include:
(cid:131) Employment multipliers
(cid:131) Efficient use of existing educational facilities
(cid:131) Branding and market positioning for the City of Whitehorse within the global
education economy
(cid:131) Increased residential density with minimal vehicle trip generation
(cid:131) Leveraging for the provision of increased support services / facilities (e.g.
medical / community hub)
(cid:131) Creation of local labour market seeking casual work.
15. International student growth at Box Hill Institute of TAFE and Deakin University is
forecasted to grow at a rate of 7% per annum.
16. Currently, 11.2% of International Students are using purpose built student
accommodation. Based on the full vacancy of most existing units and research it is
expected that demand could be closer to 15%.
17. Moving forward, the City of Whitehorse is expected to have the following number of
international students attending local institutions which would require the
corresponding number of additional beds:
2010 2015 2020 2025 2030
No. of International Students in CoW 8319 11,668 16,365 22,953 32,193
Additional beds needed from present 822 1324 2029 3017 4403

18. Design issues that must be addressed include student liveability, residential interface,
building appearance and the appropriateness of private or communal living
arrangements.
19. Issues arising from the design of student accommodation are central to achieving an
acceptable standard of living for the occupants. Managers of existing facilities have
highlighted that students have varying needs, which derive from their cultural
background. Detailed specification of room or unit characteristics within a planning
policy would not allow the policy to properly catered for or adapt to changing student
demands.
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20. Based on the current mix of accommodation types, and limited vacant land in the
municipality, it is considered that the required number of additional beds be provided
in the following amounts.
Product Type No. of beds 2006 Required no. of Required no. of Required no. of Required no. of
beds 2010 beds 2015 beds 2020 beds 2030

Townhouse 28 125 175 245 482

Apartment 398 973 1125 1310 1947

Higher density 0 150 450 900 2400
Total 426 1248 1750 2455 4829

21. The City of Whitehorse should assist in the promotion of the municipality as a student
designation, which includes encouraging the development of student
accommodation facilities in appropriate locations that have access to the key
institutions, public transport network or the Box Hill Principal Activity Centre.
22. Development of a student village close to the educational institutions in areas
designated for substantial change or key redevelopment sites should be encouraged.
The critical mass of development will have increased economic benefits, reduce
escape expenditure and ensure higher density development is appropriately located
within the municipality.
23. This can be assisted by the incorporation of the student accommodation policy into
the Local Planning Policy Framework of the Whitehorse Planning Scheme. The policy
in Section 11 provides clear locational, design and market guidance for student
accommodation.
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2 What is Student Accommodation?
Students find accommodation in a variety of forms and arrangements according to their
individual needs. The range of accommodation types is extensive, from modified buildings
that are used as ‘share houses’ to ‘purpose built student accommodation facilities’.
Where the use of existing accommodation cannot be modified in a quantity or manner that
meets the needs of the students in a given area, a market arises to provide purpose built
accommodation.
For this reason, MacroPlan have developed a description of varying types of student
accommodation based on two categories – ‘purpose built‘ and ‘modified’.
2.1 Purpose Built Accommodation
RESIDENCE HALLS AND COLLEGES
Residence Halls and Colleges are usually located on or next to the tertiary education campus.
These facilities are often owned or affiliated with a university or educational institution and
accommodate a large number of students. Students usually live in private rooms with shared
facilities such as showers and lounge areas. A Dean or caretaker often lives at the facility and
oversees student issues and enforces a specified code of conduct. Most of these facilities
provide food for students which means individual access to a kitchen is not necessary.
Students in Residence Halls and Colleges will pay a fixed rate and will not have to pay utility
bills.
INDIVIDUAL STUDENT STUDIOS AND APARTMENTS
Individual student studios and apartments can be found in developments ranging in size from
medium to higher density offerings incorporating hundreds of units. These developments aim
to provide a large number of simple, private living opportunities near educational institutions.
Studios offer private accommodation with a bed, kitchenette and living area within one space
with an attached bathroom. One bedroom apartments provide a similar living experience with
a separate bedroom and a slightly higher rental rate. Often, these developments include
communal facilities such as lounge or study rooms. They sometimes include live-in
caretakers and larger facilities may include a reception desk.
SHARED STUDENT APARTMENTS AND TOWNHOUSES
Shared student apartments and townhouses are similar in that they both have multiple
bedrooms within a self contained unit. This allows students to share their own living area,
kitchen and toilets while having a sense of ownership for their unit. Developments can be in a
townhouse format or apartments in higher density areas. Like student studios, some facilities
may have a live-in caretaker or reception.
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2.2 Modified Accommodation
GROUP HOUSING
Group Housing generally accommodates up to 10 tenants in one facility in a hostel type
arrangement. Tenants are provided with communal kitchen, bathroom and lounge facilities.
The accommodation is managed by an offsite manager who rents private rooms to
individuals. The management is responsible for renting the rooms and utility payments and in
some cases provide meals.
SHARED HOUSING
Shared housing generally involves one or more persons leasing a house and sub-letting
rooms to others to assist with the payments. While students often take advantage of these
arrangements, tenants of share houses tend to include a variety of people either working or
studying. Those living in share houses share responsibilities in maintaining the property,
paying bills, and ensuring that rooms are filled to pay the rent.
HOMESTAYS
Homestays provide students with the opportunity to live with a local family while studying.
Homestays can come in a variety of forms with one or more students living within a range of
family environments. Arrangements may include some or all meals depending on the
requirements of the student. Homestays are usually operated privately but may have an
arrangement with education facilities to provide accommodation for international students
who often look for this type of arrangement.
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